Congratulations!! You have been just hired as an equity analyst. You are asked to analyze the Ford and Walmart historical data. You will find historical data for Ford, Walmart, Market Index and T-bills in the Excel Spreadsheet that is provided to you.

A. Use Excel to calculate the following measures

3. Calculate excess returns for Ford, Walmart, and Market Index.

	Total rates of return (decimal)
Month	Ford	Walmart	Market Index	T-bill rate
Jan-07	0.0826	0.0327	0.0194	0.0042
Feb-07	-0.0271	0.0130	-0.0140	0.0042
Mar-07	-0.0025	-0.0236	0.0129	0.0041
Apr-07	0.0190	0.0207	0.0398	0.0041
May-07	0.0373	-0.0021	0.0389	0.0039
Jun-07	0.1295	0.0107	-0.0148	0.0038
Jul-07	-0.0966	-0.0449	-0.0318	0.0040
Aug-07	-0.0823	-0.0457	0.0116	0.0035
Sep-07	0.0871	0.0005	0.0408	0.0032
Oct-07	0.0448	0.0357	0.0258	0.0033
Nov-07	-0.1533	0.0595	-0.0493	0.0027
Dec-07	-0.1039	-0.0031	-0.0044	0.0025
Jan-08	-0.0134	0.0675	-0.0621	0.0023
Feb-08	-0.0166	-0.0227	-0.0217	0.0018
Mar-08	-0.1240	0.0671	-0.0104	0.0011
Apr-08	0.4441	0.1006	0.0511	0.0011
May-08	-0.1768	0.0000	0.0238	0.0014
Jun-08	-0.2926	-0.0267	-0.0784	0.0016
Jul-08	-0.0021	0.0431	-0.0133	0.0014
Aug-08	-0.0708	0.0117	0.0106	0.0014
Sep-08	0.1659	0.0139	-0.0980	0.0009
Oct-08	-0.5788	-0.0681	-0.1846	0.0006
Nov-08	0.2283	0.0013	-0.0846	0.0002
Dec-08	-0.1487	0.0075	0.0221	0.0000
Jan-09	-0.1834	-0.1595	-0.0773	0.0001
Feb-09	0.0695	0.0450	-0.1002	0.0003
Mar-09	0.3150	0.0636	0.0867	0.0002
Apr-09	1.2738	-0.0326	0.1094	0.0001
May-09	-0.0385	-0.0077	0.0678	0.0002
Jun-09	0.0557	-0.0261	-0.0031	0.0002
Jul-09	0.3180	0.0297	0.0817	0.0002
Aug-09	-0.0500	0.0253	0.0315	0.0001
Sep-09	-0.0513	-0.0350	0.0452	0.0001
Oct-09	-0.0291	0.0120	-0.0280	0.0001
Nov-09	0.2700	0.0980	0.0571	0.0000
Dec-09	0.1249	-0.0152	0.0284	0.0000